VACANCIES AND RENTS UP AT MALLS

Our friends at ICSC report that “the national retail vacancy rate rose to 10 percent in the second quarter, from 9.9 percent in the first quarter, according to real estate research firm Reis. The mall vacancy rate grew slightly, by 0.2 percent, to 8.1 percent in the quarter from the previous quarter, Reis said in its quarterly report. Net absorption, which is measured in terms of available retail space sold in the market during a certain time period, fell to 421,000 square feet in the quarter, from 2 million square feet in the first quarter, the lowest level since 2011. A spate of store closings by chains such as Payless Shoe Source and Macy’s drove the trend. Meanwhile, national asking rents grew by 0.4 percent to $20.64 per square foot, and effective rents increased by 0.4 percent from the first quarter, according to the report.”